Fine Gael concerned at EU levy on postal services

Fine Gael has expressed concern at the long-term implications of an EU plan to impose 21% VAT on postal services.

The European Commission has planned to impose the tax on all items over ten kilos in weight, in a move that would affect postal services in all Member States.

Newly elected Fine Gael MEP Gay Mitchell fears that it would soon affect more postal items as the original threshold proposed was 2kg, and he feels that it may be reduced to that in time.

This would have implications for postal workers and consumers, among others, he said.